Bitcoin (BTC) price has been hovering around the USD 19,000 level in the past few days. As long as the price consolidates near the all-time high, this is a sign of strength.
The question that worries investors is whether Bitcoin will get enough momentum to break above $ 20,000 or whether it will see a sharp correction in the near future. Analysts currently have different expectations for the next step.
While the near future remains uncertain, the on-chain analyst has Willy Woo believes the long-term outlook is more optimistic than ever. According to Woo Bitcoin is in a period of re-accumulation. This is one of the main reasons why the price has not seen such volatile corrections during its current move up to its all-time high. Woo expects Bitcoin to hit $ 200,000 by the end of 2021.
The most famous investors have expressed their expectations for higher prices in Bitcoin. But still, It is by no means the only cryptocurrency on institutional investors’ radar. The manager of Grayscale, Michael Sonnenshein, He said that in a recent interview with Bloomberg Investors who are “Ethereum first and in some cases just Ethereum” are on the rise.
The inflow of funds into Ether (ETH) shows that institutional investors are adding more cryptocurrencies to their portfolios. This is good news as it shows that investors are becoming more and more comfortable in the crypto space.
While the mood is still bullish Let’s take a look at the charts of the top five cryptocurrencies that could trigger a trend move in the coming week.
BTC / USD
The bears have been aggressively defending the $ 19,500-20,000 zone for the past few days, but haven’t cut Bitcoin below the 20-day exponential moving average ($ 18,188). This suggests that the bulls buy every little jump.
The BTC / USD pair formed a pennant near the upper resistance zone. Both moving averages are rising This indicates that the bulls have the upper hand and the path of least resistance is up.
If the bulls manage to push the price above the pennant and hold it, the next phase of the uptrend could begin. The first target on the upside is $ 21,140 and later $ 23,043.
This bullish view will be invalidated if the bears pull the price under the pennant. In this case, there is little support from the 20-day EMA and if it collapses the pair could drop to $ 17,200.
The negative divergence in the RSI is the only bearish move, suggesting the momentum is easing. However, until the price drops below the 20-day EMA, the benefit doesn’t pass to the bears.
The 20-day EMA on the 4-hour chart has flattened and the RSI has fallen to the midpoint. This suggests that there is a balance between supply and demand.
Bulls buy while dipping into the pennant support line while bears sell to the pennant resistance line during rallies.
Since neither the bulls nor the bears have a clear advantage, It is best to wait for the price to drop above or below the pennant before opening a new position.
ETH / USD
Ether rebounded strongly above the 20-day EMA ($ 555) on December 5th, showing accumulation by the bulls at the lower levels. Buyers will now attempt to push the price above the overhead resistance zone from $ 622,807 to $ 635,456.
If successful, the ETH / USD pair could resume the next phase of the uptrend that can hit the price as high as $ 800. Rising moving averages suggest that bulls have the upper hand.
However, the bears are unlikely to give up without a fight. They have been aggressively defending the resistance since November 24th at $ 622.807 and will try again to lower the price of that resistance.
If sellers cut and hold the price below the 20-day EMA, the pair could fall to $ 488,134. The RSI has formed bearish divergence, suggesting that momentum has subsided.
The 4-hour diagram shows the formation of A bullish ascending triangle pattern that completes in a breakout and closes above $ 622.807. This setup targets the $ 763.61 level.
The bears are trying to pull the price onto the triangle’s trend line. If this support fails, the bullish setup becomes invalid.
But still, If price bounces off the trendline, the bulls will try again to push price above the upper resistance. If they prevail, the next stage of the upward move could begin.
XMR / USD
Monero (XMR) has been trading near the overhead resistance at $ 135.50 for the past four days. The altcoin formed an inverted head and shoulders pattern that completed with a breakout and closed above $ 135.50. This bullish setup has set its target at $ 167.
As the 20-day EMA ($ 126) rises, The 50-day SMA ($ 122) is flat and the RSI is just above midpoint, suggesting a balance between supply and demand.
The bulls will get the upper hand after the price holds above $ 135.50 and the bears will get the upper hand if the price drops below the 50-day SMA.
On the downside, initial support is at $ 110 and below that at $ 105. Fall below this support could trigger a new bearish trend.
The 4-hour chart shows the bears continue to sell near the overhead resistance at $ 135.50. If the bears pull the price below the 50-day SMA, we may see a drop to $ 123.73. A break below this support could pull the price to $ 120 and then to $ 112.50.
Vice versa, If the price jumps above the 50-day SMA, the bulls will try again to push the price above the resistance zone between $ 135.50 and $ 142.80. If they prevail, the next phase of the uptrend could begin.
Vocational Education / USD
The bulls are trying to get VeChain (VET) above the overhead resistance of $ 0.01755. If they manage to keep the price above the resistance, the altcoin will complete a rounded basic pattern.
The rising moving averages and the RSI in the positive zone suggest that the bulls are in command. With a close above the overhead resistance, the rally may hit the $ 0.02292 level and then hit the target of the pattern of $ 0.02618.
But still, Bass players may have other plans. If they manage to get the price below the 20-day EMA ($ 0.0150), the VET / USD pair could fall to $ 0.014 and then the 50-day SMA ($ 0.0125).
Conversely, if the pair jumps above the 20-day EMA, the bulls will make another attempt to push the price above the upper resistance.
The 4-hour chart shows that the bears are aggressively defending the resistance at $ 0.01755, trying to keep the price below the 20-day EMA.. In this case, the trendline may drop.
If the pair bounces above the trendline, the bulls will again attempt to push the price above the upper resistance zone of $ 0.01755 to $ 0.01861963. If they can, the next stage of the upward move could begin.
Vice versa, If the bears are sinking and holding the price below the trendline, a lower correction to $ 0.0145 and then $ 0.0125 could be within the possibilities.
AAVE / USD
AAVE is currently in an uptrend as it has formed a pattern of higher lows and highs. The rise in the 20-day EMA ($ 74) and the RSI in positive territory suggest the bulls are at the top. If they can push the price above $ 94,875, the altcoin could rise to $ 124,075.
But still, The bears have held resistance at $ 94,875 for the past three days. If they manage to break the price below $ 79.20, the AAVE / USD pair could hit the 20-day EMA. If price bounces off this support, the bulls will try again to resume the uptrend.
Vice versa, If the price drops below the 20-day EMA, it suggests that the bears have the upper hand. The next downside support is at $ 69, and if that level fails, the pullback could extend to $ 50.
The 4-hour chart shows that bulls are buying as they break into the rising trendline. while the bear rallies sell to the downtrendline.
If the bears pull the price below the rising trendline, the pair could fall to the 50-day SMA and below it to $ 72. Falling below this support could trigger a deeper correction.
Vice versa, If price bounces above the rising trendline, the bulls will attempt to push the pair above the downtrendline and resistance at $ 94.875. If successful, the pair could resume their uptrend.
The views and opinions expressed are those of the author only and do not necessarily reflect the views of Cointelegraph. Every investment and business move is associated with risks. You must do your own research when making a decision.